Indonesian government announces plans to buy a million hectares of Australian agricultural land

13 SEPTEMBER 2013 by LAND COMMODITIES in ALL POSTS, AUSTRALIA, INDONESIA with 0 COMMENTS

UPDATED:

 

INDONESIA’S announcement on Wednesday that it plans to buy a million hectares of Australian agricultural land to raise beef cattle is the clearest signal yet that it wants to lower its dependence on the current live export system.

 

Conversely, it is also a tacit admission that Indonesia’s goal of self-sufficiency in beef is unachievable if it relies solely on its own resources.

 

The Republic’s State Enterprises Minister, Dahlan Iskan, has been quoted in local media saying that Australian land would be bought specifically to raise calves to be shipped to Indonesian feedlots.

 

“We hope this measure will go some way to resolving the issue of beef availability in Indonesia,” he told business publication kontan.co.id.

 

Much remains unknown about the proposal, including whether the Foreign Investment Review Board will approve it, and the response of the new Coalition government, some of whose members are hostile to foreign investment in agricultural land.

 

It is also unclear whether Indonesia plans to lease northern pastoral rangeland, or make a bigger diversified investment in more productive freehold land.

 

Investing in more productive land further south would enhance calf-breeding capacity, but also increase operational costs and diminish the advantage of proximity.

 

A million hectares of northern rangelands represents one moderately large station.

 

As Northern Territory Cattlemans Association president David Warriner points out, a million-hectare station would be capable of running about 50,000 head of cattle and turning off around 15,000 calves a year… read more

 

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